BAXCAUTIOUS

BAX Gross Margin Analysis

34.9%

Higher than 19% of Healthcare sector peers

Updated 1211h ago·SEC filings & market data

Key Takeaway

Gross margin, the share of revenue left after paying direct production costs, is 34.9%.

Sector Performance

19th percentile

BAX

34.9%

Sector Median

68.3%

Sector Avg

-63.9%

Prior Period

33.0%(Jul 2026)

↑ Improving

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Deep Analysis

Gross margin, the share of revenue left after paying direct production costs, is 34.9%.

That is far below the healthcare sector median of 68.3%, placing Baxter in the 15th percentile among peers. The year-over-year change is not available, but the quarter-over-quarter change is +5.8%, with the recent values moving from 33.0% to 34.9%. This combination of a low margin level with a recent quarterly improvement means the company is still generating less profit per sales dollar than most competitors, yet it may be starting to close that gap. The persistent discount to the sector median is a clear risk, as it suggests weaker pricing power or higher production costs. The positive quarterly move offers some short-term relief, but it does not offset the structural disadvantage. This metric supports the overall cautious verdict because the margin level, despite the uptick, remains far below what peers typically achieve.

Frequently Asked Questions

What does the Gross Margin tell investors about BAX?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does BAX's Gross Margin compare to its sector?

BAX's Gross Margin of 34.9% compares to a Healthcare sector median of 68.3%, placing it in the 19th percentile.

Who are BAX's closest peers by Gross Margin?

The closest Healthcare peers by Gross Margin include: AMGN (68.2%), BLUE (68.4%), TECH (66.9%), EXAS (70.1%), ALGN (70.8%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.